Teuton Resources Corporation

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Tuesday August 29, 2006

Teuton Announces Return To Drilling Of High Grade Silver-Gold Targets At Del Norte, Stewart-Eskay Creek Area

Teuton Resources Corp. (“TUO:TSX-V”) (“Teuton”) is pleased to announce the commencement of the 2006 diamond drilling program on the Del Norte property, situated in the Stewart-Eskay Creek Mining District, British Columbia and to present highlights from initial 2006 surface sampling, including discovery of the “SP” Vein grading up to 3910 g/t (114 oz/ton) silver and 19.5 g/t (0.57 oz/t) gold.

The 2006 program is funded and operated by Sabina Silver Corporation (“SBB:TSX-V”) (“Sabina”) according to terms of an option agreement with Teuton, whereby Sabina Silver can earn up to a 65% interest by spending $2.5 million on the property over four years and taking the project to a feasibility study (previously reported October 3, 2005).

Planned program highlights are as follows:

• Stepout and build a resource around Hole #2005-2 within the LG and K-Zone vein system, which intersected 15.9m/51ft grading 0.363 oz/ton gold equivalent in 2005 with acore of bonanza grade silver and gold values grading 3781g/t (110.3 oz/ton) silver and 71.31g/t (2.08 oz/ton) gold over .875m/2.8 ft.
• Drill test an intense, broad EM conductor which has been detected east and parallel to the LG vein exposure, situated within laminated mudstones. The setting is prospective for exhalative Eskay Creek-style mineralization in the wall of the main vein system.
• Drill test the best of a variety of additional surface gold-silver rich occurrences, located and resampled on the Del Norte Property during the current, 2006 exploration campaign.

Sabina plans a minimum of 3100m/10,000ft of diamond drilling at Del Norte in 2006. This is in addition to a comprehensive mapping and surface sampling program which has been underway at Del Norte since mid-July. A total of 4600 feet in 10 holes were completed at Del Norte during 2005.

Surface Mapping and Sampling

Six showings have been identified and sampled thus far during the 2006 campaign. Surface sample results to date from the various showings include:

1. “3 oz” Vein with surface grab sample assays from trace to 29.65g/t (0.86 oz/t) gold and from trace to 176g/t (5.13 oz/t) silver*;
2. Bullion Area with surface grab samples from trace to 21.2g/t gold (0.62 oz/t gold) and from trace to 1520g/t (44.3 oz/t) silver;
3. Crackle Zone with surface grab samples from trace to 9.47g/t (0.27 oz/t) gold and from trace to 2630g/t (76.7 oz/t) silver;
4. K-Zone/LG Vein area with surface grab samples from trace to 8.86g/t (0.26 oz/t) gold and from trace to 77.7 g/t (2.26 oz/t) silver in grab samples.
5. Horatio Zone with surface grab samples from trace to 2.18 g/t (.063 oz/t) gold and trace to 100g/t (2.90 oz/t) silver;
6. SP (Shaun Parent) Vein , a new discovery on the Del Norte Property, with surface grab samples from trace to 19.5g/t (0.57 oz/t) gold and trace to 3910g/t (114 oz/t) silver.

Mineral occurrences on the Del Norte property, with the exception of the Crackle and Horatio Zones, are mainly vein type areas of quartz flooding, brecciation and sulphidation focused along a contact between older Hazelton Group volcanic rocks and younger basinal sediments of the Salmon River Formation or Bowser Lake Group. The contact is mainly tectonic but the fault structures are coincident with the stratigraphic contact between these units, possibly due to structural weakness caused by early faulting during the basin initiation. The occurrence of a patchy but intense acid-leach alteration system, stratigraphically beneath the sediment/volcanic contact, may be a source of metals which were then precipitated in the more permeable tectonically disrupted rocks at the contact. The Bullion area, “3 oz” Vein and SP Veins are promising fault associated prospects.

Establishing a continuum at Del Norte between silver and gold-rich vein type mineralization and precious metal-enriched exhalative mineralization typifying the Eskay Creek Deposit remains a priority for the 2006 exploration program.

Harvey Klatt, P.Geo. is the Qualified Person for Sabina in charge of the 2006 exploration program on the Del Norte property and has reviewed the technical data contained herein. Assays were carried out by Pioneer Laboratories of Richmond, B.C., an accredited facility.

For further information, please contact:

D. Cremonese, P.Eng., President

Phone: 604-682-3680
Toll-free : 800-879-2333
Fax: 604-682-3992

Note : * conversion of g/t x 0.029166 = oz/t

D. Cremonese, P.Eng., is the Qualified Person for Teuton Resources Corp. in regard to data presented in this News Release.

“D.Cremonese, P.Eng.”, President

Silver Grail Resources Ltd.
Teuton Resources Corp.

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This news release includes certain forward-looking statements concerning the future performance of our business, its operations and its financial performance and condition, as well as management’s objectives, strategies, beliefs and intentions. Forward-looking statements are frequently identified by such words as “may”, “will”, “plan”, “expect”, “anticipate”, “estimate”, “intend” and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, competitive risks and the availability of financing, as described in more detail in our recent securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward looking-statements and we caution against placing undue reliance thereon. Silver Grail Resource Ltd. And Teuton Resources Corp. do have an ongoing obligation to disclose material information, as it becomes available.

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